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Author
Title
eBook formateBook, (torrent)En
PublisherPermakultur Publikationen
File size6.1 Mb
GanreNon Fiction
ISBN9783980218405
Pages count87
Book rating4.43 (15 votes)
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Very well written text on why the current global financial system is not sustainable, and how we can amend it. I liked that the author is an architect, rather than an economist. She is more “technically” minded and expresses her ideas very clearly.

In few words: sustainable economy is subject to growth with saturation (bound growth), compound interest assumes exponential growth (fast unbound growth). People pay interest even if they do not borrow personally, capital costs amount on average to 50% of the goods and services costs. Most people pay more interest than they receive. So the system is inherently unstable, leading to inequality and accumulation of wealth in the hands of a minority. So while the compound interest remains the only mechanism to keep money in circulations, the rich get richer, and the poor get poorer, until nobody can pay the debts, or some external resources are used to fuel the exponential growth for some more time (read: by making somewhere a worse place or someone's life more miserable).

There is an alternative: a fee to keep cash in circulation. There was a historical experiment in Austria with such a money system, and it was wildly successful (terminated for political reasons). There are some local interest-free payment systems in the world, and they seem to work well (WIR network, J.A.K. banks, local exchange systems). There were historical money systems without interest but with a fee, like bracteate medieval money, which discouraged accumulation of cash, and encouraged investments in arts, architecture and real goods.

There is an interesting discussion how land and tax systems should be reformed when interest-free money is introduced.

Overall, I think that Dr. Kennedy is very reasonable. She points to a fundamental defect of the modern economy, and suggests something that may be a better solution. At least it worked locally and on smaller scale. More people should be exposed to these ideas.

P.S. A free PDF is available from the author website: Interest and Inflation Free Money. Images are resized and compressed way too much, but the text is readable.

Tags: download, margrit kennedy, ebook, pdf, interest and inflation free money

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